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Below is the Daily Market Commentary 13 April 2022 By Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd

Equity markets were negative today as March inflation spiked to 17-month high level. After trading in green for a while, Nifty erased its morning gains and ended near day’s low levels with loss of 55 points (-0.3%) at 17,476 levels. Broader market ended flat. Sectorially it was mixed bag with Oil & Gas, FMCG, Metals, Pharma and PSU Bank ending in green. While Auto, Financial Services, Private Bank, Realty, Consumer Durables and IT closed in red.

Global market were trading mixed as US inflation hit 40 year high to 8.5% in March’22. Gains were also capped on account of pressured from rising cases of COVID-19 in China and failing peace talks between Russia and Ukraine.

Domestic markets witnessed some selling pressure in a short trading week as investors remained cautious given sustained high inflation and its impact on economy. Going ahead, market is likely to remain volatile till the inflationary pressure persists, raising scope for aggressive rate hike by Central Banks globally. Q4FY22 result season has started with TCS number being in line with expectation. Two index heavy weight Infosys and HDFC Bank will be announcing their results over the long weekend to which market would react on Monday Overall we expect healthy 4QFY22 earnings which should drive the stock specific action in the market.

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